SDLTM50950 | Procedure: Notification of additional events taking place

In accordance with Section 90 FA 2003 when the contingent consideration becomes known, a notification is required within 30 days. The notification should quote the deferment reference number and include either a cheque for the additional tax or the details of an electronic payment.

If a return was not required before, an SDLT1 and any tax due will be required within 14 days from the date the consideration became known.

If the transaction was originally notified, a further return, in the form of a letter, is required and should be sent within 30 days of the consideration becoming known and should be sent to the Stamp Office at the address here

In cases where more than one additional payment arises in a calendar month for example where the relevant event relates to plot sales, the letter of notification should give details of all the individual sales and incorporate a schedule showing a breakdown of the additional consideration paid on each plot during the month and the tax due, unless this is the first notification relating to the transaction, in which case an SDLT1 is required

NB. When the payment of additional consideration is notified the overall transaction value should be taken into account to ensure the correct rate of tax is paid on both the initial and contingent consideration. See examples SDLTM50900a.

If the effect of the notification is that less tax is payable than has already been paid, the amount overpaid shall on a claim by the purchaser be repaid together with interest as from the date of payment.